The present invention relates in general to copying and check processing machines and in particular to a check processing device incorporated into a point of sale terminal to process check transactions.
Dishonored checks from customers are a frequent problem for retailers. It is necessary for the retailer to ensure the value of checks received, but he must do so in a manner that is not objectionable to customers. In order to reduce the risk that a check will be dishonored, a retailer will often require the person presenting the check to provide two pieces of identification, such as a driver's license and a credit card or check guarantee card. At a point of sale terminal, a salesclerk writes the customer's license and credit card numbers together with expiration dates on the check in an effort to identify the person writing the check to ensure payment thereof. However, even with this practice the incidence of dishonored checks is high.
The mere recording of numerical identification on the check does not effectively deter customers from passing bad checks because there is no convenient or effective way of positively linking the true identify and address of the individual writing the check to that particular transaction. Previously, a salesclerk was unable to conveniently record an image of the customer and his or her personal identification and as a result, dishonest customers were able to employ various schemes to deceive retailers such as falsifying their identification by placing a personal photograph on a fake or stolen driver's license and using it together with other stolen or phony identification and checks. Since the customer's photograph and true identity were not recorded by the retailer, there was no fear of being caught, and the dishonest customer was at liberty to deceive the retailer. Also, a customer may knowingly or unknowingly write checks on an account with insufficient funds. A method of accurately and effectively recording such an individual's identity is necessary to deter these practices.
An attempt to deter such activity by copying several numbers by hand from a customer's identification cards is tedious, time consuming and error prone. If a transcription error does occur or the salesclerk overlooks an expired card, the customer using a stolen check or an account with insufficient funds cannot be adequately identified and located or the check is not guaranteed.
Typical video surveillance systems do not link a particular customer to a bad check because literally hundreds of persons can pass through each point of sale terminal each day, and it is difficult or impossible for a salesclerk to remember which persons write which checks. Even if a retailer were to go to the expense of using a typical close-up video system to record an image of both the customer and his or her check, customers would likely object to reproductions of their likeness, signatures, credit cards and checks being retained by the retailer so as to be easily accessible by store personnel and others exposing customers to possible inappropriate use of their accounts. As a result, retailers who use such methods could lose business from objecting customers.
Another method of preventing dishonored checks is the comparing of a customer's checking account or identification against "hot sheets". Such manual comparison of customer identification and checking account numbers with "hot sheets" retained by the retailer is tedious, time consuming and error prone and can be offensive to the customer.
Similar to the problem of dishonored checks, dishonest customers, who for example have stolen credit cards, can deceive retailers by making purchases with stolen credit cards using stolen or fake identification. A convenient and effective method of preventing such practices is also needed.
In addition to the above described problems, a dishonest salesclerk might knowingly deceive his or her employer by taking a known bad check or allowing a friend to write a check without proper identification, contrary to store policy. Previously there was no way to prevent this from happening other than relying on the deterrent value of punishing the salesclerk upon discovering the violation or requiring the salesclerk to cover dishonored checks with his or her own paycheck.
U.S. Pat. No. 4,658,126 issued Apr. 14, 1987 to May discloses the idea of forming a xerographic image of customer identification on the back of a check.